That is +23.7% and +27.6% increase accordingly. Adjustments have been made to electricity distributor ESO, but not yet, and perhaps won’t be any for the rest of 2020 for operator Litgrid.

Outs – what company spends on

Electricity purchased in NordPool is the sole cost of goods sold. And dynamic of electricity price are as follows amid Corona triggered crisis:

2020 Q1 COGS will be significantly lower than that of 2019 or 2018 for that matter.

Yes, electricity demand drop, but these positive margin scissors will have much higher effect in my opinion and I don’t think the market is putting this together. And those that do – can’t enter due to liquidity.

Or, of course possibly I don’t know the delicacies of electricity trade…

Litgrid Position

One of the stocks that did not recover nearly at all from the bottom formed across all markets and majority of equities recently is Litgrid. After tracking the stock for several months I finally formed my position this week in the price range below 0.54 EUR.

By the way, this is not the first time I am ambiguous about the date or exact price of purchase. Blame the market illiquidity, folks.

Targeting 10-15% return in under half year according to market sentiment. Waiting for dividends is worthless, as Litgrid has massive investments planned up to 2025.